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RUBCO HUAT WOODS (P) LTD

INTRODUCTION

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CHAPTER 1

1.1 ABOUT THE INDUSTRY

The continuous change in the industrial environment has forced today's organizations
to modify and update the existing system. Study about these organizations will benefit
company and academicians to review the new dimensions in building up of high-tech
corporate for the future. It gives a clear insight into real life situations. Such studies
enables others to know about the functions and the importance of each department in
an organization.

An organizational study at RUBCO HUAT WOOD (P) LTD was therefore done
to understand more about the organization, its functions and activities.

RUBCO is started to promote the rubber plantation in Kerala. Rubber plantation in


India is large. Our country is the one of the largest national rubber producers in the
world, now it occupies the fourth most position in the production of natural rubber.
Thailand, Indonesia and Malaysia occupy the first, second and third position
respectively, accounting for more than 9% of the global output. It provides raw
material for the product manufacturing industry.

Rubber cultivation in India has been traditional confined to the hinder lands of south
west cost mainly the Kerala state and Kanyakumari district of Tamilnadu. The
nontraditional regions cultivating runner includes costal Karnataka, Goa, and Konkan
region of Maharashtra, costal Andrapradesh, Orissa , the North eastern states and
Andaman niccobar islands. Commercial cultivation of rubber in India was started in
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1902. The state of Kerala adjoins Kanyakumari district of Tamilnadu and traditional
and major rubber growing area of the country

INDUSTRY PROFILE

Furniture is the name given to all movable and some immovable accessories provided
for rooms or other areas of any structure from cottage to palace or religious edifice. It
may be made from a wide range of materials but wood and metals are usual. What is
known about furniture stretches back to the ancient Egyptian and progress with some
breaks to the present day. During these long span basic forms, such as the chair, table
and bed were evolved and passed on to the succeeding people and cultures for
refinement and amplification. The steps of this progression from the history of
furniture design.

Worldwide, the furniture manufacturing industry generates about $400 billion in


annual revenue. Top countries for furniture manufacturing include China, Germany,
Italy, Malaysia, Taiwan, and Vietnam. The European Union is the largest consumer of
furniture goods, followed by the NAFTA region (primarily the US and Canada), and
Asia (primarily China and Japan).

HISTORY

Modern furniture designs after world war first were of three kinds - Functionalist
modern, Transitional modern and Commercial modern. The commercial modern
became associated with extra values which commercial furniture often offered by the
manner in which it was advertised. All furniture design was influenced by the social
and economic trends of the era, formal living standard declined, mechanization of
house hold labour expanded. Living spaces shrank, particularly in height and home
entertainment became important.
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After world war second especially people married at a younger age. Total population
growth accelerated and a generally rising standard of living was enjoyed by a vastly
enlarged middle income group. Furniture became smaller, lighter, easier, to maintain
and more widely distributed.
The word furniture comes from the French word FURNITURE, which means
equipment. In most other European languages, however the corresponding word
(German umbel, French Meoble, Spanish Meoble, Italian mobile) is derived from the
Latin adjective mobiles, meaning movable. The continental terms describe the
intrinsic character of furniture better than the English word. To be furniture it must be
movable.

In general furniture produced in the last 5000 years has not under gone innovative
development in any profound sense. An Egyptian folding stool dating from about
1500 BC fulfills the same functional requirements and possesses the same basic
features as a modern one. Only in the mid-20th century with entirely new synthetic
materials such as plastic and completely new fabrication techniques such as casting
have there be signs of a radical revision of the concept of furniture

FURNITURE INDUSTRY IN INDIA

Furniture industry in India has started growing in a vast manner. Furniture being a
necessity its need have risen to a large extend. Furniture industry is concentrated in
the state of Delhi, Mumbai, Kerala, Uttar Pradesh and Chennai. Now a days,
developing the industry and have more of premium products. There is heavy
competition in this field.

Due to various factors like extensive plantations good availability of raw materials
availability of economical and technically skilled man power and a vast domestic
market, India is all set to make a mark in the global rubber industry. India is ideally
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poised to supplement and compliment overseas manufacturers through joint
collaborations and technical exchange to contribute substantially to the world rubber
trade. Furniture companies must look towards the important and potentially giant
Indian consumer market, since all world leaders in different industrial sector have
already established their production in joint venture in India.
India indeed has a lot to offer to those furniture manufactures who wish to establish
their profitable business in the country for a very long period. Today Indian
consumers expect and demand for an outstanding quality both of furniture and other
consumer goods. The fast growing industries are house hold appliances, food
processing, furniture, air pollution control equipment, car, computer and
telecommunication etc.

The world of furniture has undergone tremendous changes in recent years. Apart from
table, chairs, cots, dining tables, sofa etc. furniture includes wooden partitions. In the
dining room, computer tables, TV stands, cabinet for VCD and music system etc. It
also covers beautiful shelves to exhibit bohemian crystals and products for interior
designing. Hence a number of domestic and international furniture makers have
emerged in the Kerala scene.

Since the furniture industry in India is at the threshold of a big boom in the next three
years, its time for companies to consider a serious business activity over there. Some
overseas companies have already set up their manufacturing units- Gautier (France)
with Birla Group of India in Chennai; Chateau dAx (Italy) in joint venture with Ace
seating Pvt. Ltd, in Pune; Baker furniture (US) in co-operation with Renaissance
Furniture Pvt. Ltd. in New Delhi.

MARKET SIZE OF FURNITURE

Indias total population is near 1000 million people, of whom about 80 million live in
8 metropolitan cities: Calcutta, Mumbai, New Delhi, Chennai, Hyderabad, Bangalore,
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Ahmedabad, and Pune. There are around 40 million consumers in the upper-middle
class and upper class.

Presently the Indian market size of furniture is about US$ 2 billion and almost 85% of
total sales are realized in tidy workshops owned by carpenters. There are only a few
companies which manufactures and market brand furniture. Since furniture in India is
still sold mainly as a no-name product and consumers do not express any brand
preference, there is a tremendous sales potential for leading companies.

According to Infinitum Management Services, the household segment absorbs 65% of


furniture sales, corporate and office furniture 20% and hotel 15%. Major local
manufacturing companies are to be found more in the office furniture segment rather
than in home furniture. Wood working machines come mainly from Germany, Italy,
and Spain etc.

FACTORS FOR SUCCESS IN INDIAN MARKET

Marketing
Education
Visibility
Events & Promotions. Work with Key organizations.
Exposure to your facilities
Right Partner: Work with National players.
Youth appeal is important in a country where more than 50 million
populations is below the age of 25.

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FURNITURE INDUSTRIES IN THE WORLD

The reason for the success of Italian furniture industry is no raw materials, no more
currency devaluation, a comparatively high labor cost and still ranking no one in the
world furniture trade. Consumers attitude is going to become ever more selfconscious. Furniture companies must look towards the important and potentially giant
Indian consumer market.

In china furniture distribution channels shows some different pattern in comparison


with those used in western countries. Focus on Beijing, Shanghai, Guangzhou and
Shenzhen; China is great vitality in the furniture sector. The impact of the Asian crisis
did not stop China from seeking greater efficiency in the furniture industry.

FURNITURE INDUSTRIES - A GLOBAL VIEW

European Union: Italy, Germany, France and Denmark are the leading
exporting countries.

The German furniture industry: Production recover will be harmonious with


domestic consumption and exports of furniture. Ten chains and five
purchasing groups control 50% of the market

Upholstery furniture in the United States is fast growing in import.

The kitchen furniture industry, domestic market is picking up.


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The furniture market in Turkey: Good potential for modernization and growth.

The furniture industry in Brazil: New investments are increasing the


production capacity.

The main furniture importing countries such as Mexico and Russia have slow
down.

The furniture sector in New Zealand: The country forestry resources and the
expected developments in the next yeas suggest interesting opportunities for
the foreign investors

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1.2 OBJECTIVES OF THE STUDY

To have real life knowledge of an organization through various departments.

To understand the strategies adopt to confront the challenges faced by the


company.

To know the actual position of the company with respect to its competitors.

To understand the actual relationship between employer and employee.

To know about the vision, mission, SWOT analysis of the organization.

To understand about the decision making and dealing with complex


situations.

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PROFILE OF THE
ORGANIZATION

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CHAPTER - 2

2.1 HISTORY

RUBCO HUAT WOODS (P) LTD, registered under the company act 1956 is the
rubber wood processing and furniture manufacturing factory of RUBCO set up with
financial and technical collaboration WITH M/S LONG HUAT GROUP BERHARD
Malaysia a well-known name in the field of rubber wood industry for the last 30
years. It was set up in the year 2000 with plant capacity of 40 000 metric tons per year
and started commercial production only on January 2001. RUBCO HUAT WOODS
(P). LTD is an ultra-modern rubber processing plant situated in KINFRA small
industries park in Tellichery Kannur district, with state of the art machines imported
from various parts of the world.

The Rub wood panels produced by RUBCO are the best of its kind in the country. Its
glue joints conform to JAS and DIN standards and can be used for a variety of
wooden applications. The acceptance of Eco wood furniture by the international
market reaffirms the quality of Eco wood.

RUBCO started its operation on 9th June 1997. The registered RUBCO commenced
operation in October 1997 and commenced procurement of rubber on 17 th Feb 1998.
RUBCO commenced procurement at rubber from farmers through depots. From June
1998 they exported rubber to Singapore and Nepal.

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On 23rd June 1999 signed a significant technical collaboration agreement with LONG
HUAT BERHAD Malaysia for processing of rubber wood and furniture
manufacturing unit on 9th Dec 1999 entered in to an agreement with M/S TONG TEIK
(P) LTD of Singapore to export 15000 tons of rubber first time from India and finally
on 11th Jan 2001 RUBCO HUAT wood furniture factory commenced commercial
production.

Led by professional management team and ably supported by a committed


workforce, RUBCO is now poised to enter a high growth phase, with several new
initiatives that will take the group of path expansion and diversification. Rubber
holds immense potential for a wide variety of commercial uses which is yet to
be fully taped into. By realizing this potential, RUBCO hopes to create
opportunities and bring industrial progress to a land that accounts 92% of the
countries natural rubber production. In the process, RUBCO also aims to
achieve

its

vision

of

turning

into

multi-faceted, globally competitive

organization, excelling in its every sphere of activity.

BOARD OF DIRECTORS

The administration and management of the company rests in the hands of board of
directors consisting of 15 members as followers.
1

nine directors elected by A class shareholders among themselves

two directors elected by B class share holders

three ex-office directors by registrar of co-operative societies, Kerala

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The term of office directors shall be five years from the date of assumption of the
office. The co-operative cannot receipt deposit or loans in excess of 50 times the
paid a share capital plus reserve fund of co-operative societies. This limit is not
applicable to funds received from the central and state Govt. or other agencies like
NCDC, Rubber Board etc.

PAYMENT OF WAGE
The wage and salary are provided to the employee are as per minimum wages Act.
Through the minimum wages is fixed. Efficient workers are giving incentives in the
foam of additional wages.

WORKING TIME

The working time of the firm is 10 am to 5 pm

SELECTION METHOD
Recruitment selection and control of workers of employees in a firm hold every
important place in the business. Selection of workers mainly two types selection,
internal and external

LEGAL FRAME WORK OF THE ORGANIZATION

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RUBCO is governed by the byelaw which provides that RUBCOs area of
operation will cover the entire state of Kerala, however there is no restriction on
the area of operation as far as the sales and marketing of the products dealt in by
RUBCO is concerned. As per by law, the main social objects inter alia include to
further rubber cultivation in the state, to accelerate the industrial growth and
strengthen the cooperate movement.

NATURE OF BUSINESS CARRIED


RUBCO HUAT WOODS PVT LTD is production sector where different kinds of
furniture products and panel boards are produced. In this plant rubber logs are used as
raw material and these raw materials are collected through local purchase. This plan
has a processing capacity of 40,000 metric tons per year. The main focus was given
for exporting at the beginning but later company divided into deal mainly in our
country itself. Company products are marketed from exclusive shops and company is
having almost 112 dealers in India. The products are being exported to UK, USA,
Japan, Saudi Arabia and many other countries across the globe.

Rub wood furniture range comprises of dining tables and chairs, designer wardrobes,
futon, kitchen cabinets and computer and office furniture and is available in a choice
of designs.

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2.2 VISION, MISSION AND QUALITY POLICY

VISION
To become a global leader in rubber industry.

MISSION
RUBCO mission is in their continuous pursuit for excellence and customer
satisfaction. The members of RUBCO are committed to rubber and rubber wood
based products of globally accepted quality at international cost and ensure better
price for natural rubber growers by

Optimum utilization of resources


Setting up of innovative trends
Enhancing individual skills to make every employee of Rubco feel proud

of his organization
Maintaining international quality system standards.

QUALITY POLICY
RUBCO quality policy is to give an enhanced satisfaction to our customer through the
manufacture and supply of rubber wood products such as RSKD, EGP and furniture at
the competitive price by the use of modern manufacturing facilities. The company
voluntarily meets all the products and process related regulatory requirements and

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they are committed to continuously improve their performance in all shears of our
activities.

2.3 ORGANIZATIONAL STRUCTURE


Board of directors
Managing directors
General

Purchase
Officer

Store
Keeper

Selection
in charge
QC

Assistant
purchase
officer

Time
Officer

Selection
in charge
furniture

Superviso
rs

STUDIES

Chief
production
manager

Workers

Account
Officer

Manageme
nt
represents

Account
clerk

Selection
in charge
saw mill

Superviso
rs
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Maintain
manager

Superviso
rs

Sales &
shippin
g
manage

Assistant
sales
and
SCHOOL OF MANAGEMENT shipping
manager
Workers
Workers

RUBCO HUAT WOODS (P) LTD

PRODUCT PROFILE

RUBCO rubber wood prefinished panels open up unlimited possibilities in design and
processing on par with the highest standards and unequaled inelegance. Rubco timber
panels are produced by sophisticated process of figure joining and edge gluing. Using
resins of polymers, which are either white or translucent, excellent finish and
durability is guaranteed. They also confirm to International standards. These solid
timber panels of RUBCO are easy to saw, machine, drill, bore or stain sanded to
240grit. They offer smooth finish and excellent nail holding capacity.

RUBCO TIMBER PANELS


RUBCO timbers panels are eco-friendly ensure lower wastage of materials and cut
down on labor, time and overall cost. RUBCO timber panels available in varied sizes
from 15mm thickness upwards with a maximum cross section size of 5200mm x
1300mm. RUBCO timber panels can be applied for the following uses.

Door and Window frames


Office furniture and partitions
Modular tables and peripherals
Designer wardrobes
Kitchen cabins
Dining tables and chairs etc.

RUBCO HUAT FURNITURE

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The colonial furniture collection from RUBCO is an ideal way to add splendor to
homes. The furniture ranges offered by HUAT are

DINING TABLES WITH CHAIR


RUBCO range of dining table is available in oval, round and square shape with
matching chairs. Its available in different colors like; Honey, Northern Rose wood,
natural and so on.

DINING SET

OVAL TABLE

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ROUND TABLE

COMPUTER TABLES

RUBCO HUAT WOODS offer fully designed computer table to their consumers. It is
also available in different colors like; Honey, Northern Rose wood, and Pigment Red.

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T.V .STAND

T.V. stand is simply designed but they dont merely serve their purpose but stand out
as elegant pieces of home dcor as well.

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SOFA SETS, DIVAN COTS AND ROCKER CHAIRS


These sofa sets in exquisite design and in a range of finish helps to create beautiful
living spaces. It is also available in range of colors such as; Honey, Northern Rose
wood and so on.

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COT
They manufacture both single and double cots and elegant ward robes that make bed
rooms more beautiful and comfortable. It is also available in different colors such as;
Honey, Northern Rose wood and Pigment Red.

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AREA OF OPERATION

RUBCO HUAT WOODS (P) LTD conducts its business operation at different
dimension like regional, national and international at the beginning stage company
concentrated more on the exporting up to 70% to 80%. But now it is minimized to
30% to 40%. Since it is a co-operative organization it has a social responsibility
towards the people of the country. RUBCO HUAT presently mainly focuses on both
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regional and national market. Company products are marketed through exclusive shop
in the country and the company is having 112 dealers in India. The products are being
exported to UK, USA, Japan, Saudi Arabia and many other countries across the globe.

ISO- CERTIFICATION

RUBCO gives more important for the quality of products which can ensure
customer satisfaction. They are certified by ISO 2000 and ISO 2001

OWNERSHIP PATTERN

Government of Kerala (GOK) along with Indian rubber board and some district
primary co-operative banks in Kerala are the promoters of RUBCO. Government of
Kerala holds the majority of shares. Top ten shares holder are, Government of Kerala,
rubber bored, Kottayam district co-operative bank, Ernakulum district co-operative
bank, Palakkad district co-operative bank, Calicut district co-operative banks, Kannur
co-operative banks, Trissur district co-operative banks, Trivandrum district cooperative banks, Kollam district co-operative banks these are the major top 10
shareholder of RUBCO.

COMPETITORS INFORMATION
RUBCO HUAT WOODS (P) LTD competitors include medium and small industries.
The company expects that competition will increase and potentially include imported
items from other countries. The company strongly believes that in sustaining the
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challenges posed by the competitors. The company strength will be in customer
satisfaction, quality assurance and innovative solution through wide variety of
products and technical expertise.
DAMRO

FURNITURE

MOZART FURNITURE
CLASSY FURNITURE
RAJADHANI
MASCO

FURNITURE

FURNITURE

COMPETITIVE STRATEGIES

Attractive and innovative design.


High quality of products and imported varnishes and cushions.
Unique promotional and advertisement strategies.

INFRASTRUCTURAL FACILITIES
RUBCO HUAT WOOD (P) LTD is rich in its infrastructural facilities. It is located in
a vast area of land Kannur district. THE RUBCO HUAT (P) LTD provides the
following facilities.

The company has separate plant and sophisticated imported machineries


for producing each product.

It has a co-operative store exclusively for employees.

Employees State Insurance scheme (ESI).

Canteen facility.

R&D with sophisticated equipment.

Advanced library.

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AWARDS AND ACHIEVEMENTS

Obtain the ISO 9002 certificate for rubber wood products in India

Technical and financial collaboration with m/s LONG HUAT BERHAD of


Malaysia

RUBCO is also having a full- fledged agency division to establish a direct


link with farmer society and the consuming industry

FUTURE GROWTH AND PROSPECTS

The company is having a good plan to improve performance the company is looking
at a growth of 30% in the coming year simultaneously the management has taken
several steps to exercise strict control on various items of expense apart from this
company has a plan to import innovative machineries and techniques from Malaysia
to increase its productivity. The company has already taken measures to increase its
performance as all major players in furniture industry are planning to come in Kerala.

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DEPARTMENT STUDY

CHAPTER 3

3.1 PRODUCTION DEPARTMENT

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RUBCO HUAT WOODS (P) LTD division has progressively recorded high
productivity and profitability production department in equipped with efficient and
qualified managers and supervisors.

FUNCTION
The main function come under production department are
1. PRODUCTION PLANNING
2. FURNITURE PRODUCTION
3. PRODUCT DEVELOPMENT

PRODUCTION PLANNING

It is done on the basis of specification or orders placed by Rubco SALES


INTERNATIONAL LTD and based on domestic order placed by authorized
distributor. The required quality and quantity is specified through production
planning and production is done according to this planning quality is ensured by
quality control department. Production planning involves an organization of an
overall manufacturing and operating system to produce a product. Objective of
production planning is to provide a physical system together with a set of operating
guideline of efficient conversion of raw material human skill and other input to
finished product.

The production planning procedure are varies from company to company. The
major factors determine production planning procedures are;
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volume of the product

nature of production process

nature of operation

FURNITURE PRODUCTION
Manufacturing process of RUBCO HUAT WOODS (P) LTD start from receiving the
raw material and ends with the dispatching of finished goods. RUBCO HUAT
WOODS (P) LTD manufacturers a range of elegant furniture and quality edged glued
panels using the eco-friendly rubber woods. Rubber woods properly treated and
processed is emerging as the ideal substitute to rain forest wood as it offers the same
strength durability and finished as the later manufacturing process of RUBCO starts
from the raw material receiving and convert into the finished products.
The work flow model is as shown below

WORKFLOW MODEL (End to End)


SAW MILL

FURNITURE SECTION

S4S & EGP

DISPATCHING & ASSEMBLING

The process begins from log yard. It is a place in which logs are unloading for the
furniture production, RUBCO furniture are making only by using rubber woods. If
any defects are found any unloaded rubber wood, the logs will be send back. There
are lots of procedures for checking the useful log. The quality department will
check each and every log. The second step is to saw the log for the manufacturing
of furniture. The logs cut in to particular length and width after that the log will

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check again for the usefulness. if any defect found it will not use further for
manufacturing purpose.

The pieces of wood have a particular order for arranging and keeping. it will keep
at a certain quantity of level process continue and keeps the woods the prescribed
manner. The next process is store the material in impregnation plant. The materials
are processing inside the impregnation plant in to add extra strong and durability
for woods.
The replaced woods from the impregnation plant in keeping in KLIN DRYING
room for reducing the water content in the processed wood. The HOT OIL is
sprayed to the room from the boiler. It is used to heat the wood. A particular type of
fan is using for maintaining the temperature level in all area of the room. The
woods are keeping twelve days in the room.

SAW MILL & BOILER SECTION

The production process begins from the log yard. The rubber wood supplied by the
suppliers are unload at the factory log yard in the presence of the security guard, who
maintains a register to the detail like the name ,weight of the load, and date of receipt.
The quality department checks the log for any visible defects
The main operations at the saw mill & boiler sections can be divided into three stages

Sawing

Chemical treatment / impregnation

Kiln drying

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SAWING

The rubber wood from the yard is directly sent to the saw mill. The saw mill
operations are controlled by the saw mill supervisor. At the saw mill the rubber wood
log are first weighed by the means of Weigh Bridge. Then the woods undergo the
process of sawing, whereby the rubber wood logs are cut into required length and
width. It is estimated that only 48% of a rubber wood log can be used for the
production and the rest 52% of the wood is unfit/wastage due to tapping marks, curb,
nails etc. So when logs are taken the quality checkers inspect the quality of rubber
wood and grade them

Three types of saws are mainly used for sawing.

1. Band saw
It helps to cut thick and huge rubber wood logs into smaller ones. There is one band
saw for this purpose.

2. Re-saw

The logs that are cut by the band saw are taken here. The logs are cut in to the
required width and size according to the instruction given by the supervisors. There
are 10 number of re-saw in the factory.

3. Jump saw
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The logs cut from the re-saw are taken to jump saw, where the logs are length wise
cross cut and made into smaller ones according to the specifications given by the
supervisors. There are 12 umber of jump saw in the saw mill section.
After the sawing process the chopped pieces of rubber wood are brought to conveyer
belt and the pieces are sorted according to the width length and thickness. The sorted
wood pieces are stacked over a trolley by using aluminum rods and they are tied well.

END GLUED PANEL SECTION (EGP)


The output of S4S section forms the input of EGP section using the sophisticated
technology of FINGER JOINING SECTION the sawn timbers are joined together one
after the other similar pieces are joined together so as to maintain the color and
texture of the panels. The four distinctive stages that the material pass through first is
finger cutting and joining in this process wood pieces are finger cut joined with glue
next comes four side molding in this process the lumber pieces are joined (Rotary
composer) after that composing is a process of joining the narrow panels top from
bigger boards (4 side molder) finally the sanding here the composed panels are sanded
for further finishing end glued panels and boards are one of the finished products that
RUBCO producers. It is used for ceiling, paneling, flooring, furniture making etc.
There are different types of process in E G P. they are

jump saw

top and bottom plainer

multiple rip saw

sorting

finger joining

molding

composing

end cutting

sanding
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finishing

The wood panel boards are creating in this section by using wood pieces. The
furniture manufacturing unit uses only these types of panels. There is no large size
wood piece. Each and every log is cutting in to small pieces. There are lots of
processes involved in this section.

Planning area
It is area in which the wood processes are planning in to two sides. This is the first
process in this section. Wood pieces are taken for joining purpose after keeping
wood in kiln drying room for particular period of time. The wood pieces will to
having plain or smooth surfaces. So for the manufacturing purpose it must plain
the surface of all wood pieces.

Multiple rip saw


This process is also similar to planning but in the process the other two sides are
planning. After this process the wood pieces will have smooth surface in all four
sides. After top and bottom planning and multiple rip saw, a new colour or design
is appearing on the surface of wood pieces. It may be plain surface, line surface or
flower type.

Finger joining
For the manufacturing of the furniture the woods must have a certain level of
length and width. So it is important that the wood pieces must join together. So a
special type of process for the joining the wood pieces is involved, it is called
finger joining. Two machines are using together for this purpose. One is male part
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and other is female part. First machine cuts the edge of the wood in the teeth shape
but the second one cut and attaches the glue to the edge.
After that the wood pieces are passes horizontally through the machine and pieces
are automatically joins. A particular length is fixing in the machine and it
automatically cut the joint woods in the same line. The minimum length we can
adjust in the machine is 1539 and maximum 4578

Molding
There are two types of machine used for molding purpose. 7 head molder and 5
head molder. This is used for the molding of two sides.

Composing
This is an important in EGP. It is the process of joining the finger joint wood
pieces in a panel format. In this process edge of the wood pieces will not cut. The
finger joined wood pieces are keeping in the composing machine by using the glue
in the rip side.

Cutting

The length of the wood pieces may vary in small difference. So we have to cut the
end of panels for getting correct shape.

Sanding
The wood panels are again sanding by using special type of machine which will
have 3 sanding paper inside. It gives a smooth and plain surface.

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Finishing
This is the last section of EGP .some defects or whole may appear in between the
production process. One all the process are completed the defected wood panels
are taking for finishing purpose. For removing the holes in the board wood powder
mixing with glue and fill the gap.
There are different sections and machines in furniture departments are

narrow and band saw

auto copy shaping machine

wide belt sander

single head & double head tenner

jump saw

back knife lathe

turning sander

single spinning shaper

double spinning shaper

mortise

router

drilling

spindle sander

edge sander

oscillating drum sander

brush sander

lathe sander

multiple purpose drilling machine

hydraulic multipurpose mortise

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FURNITURE SECTION

The semi-finished goods are transferred to finishing and assembling section. From
furniture section for the final finishing and process in RUBCO assembled after
finishing dining chairs, cot, sofa and teapot etc. these assembled items are sent to the
dealers or agencies.

SPRAYING

Spraying is the process of coating gloss finish it help to smooth finishing and high
durability which is imported from Malaysia and Italy. In the local market colors like
natural rose wood and honey are used but to the foreign market number of color are
available like white, light cherry, chair oak etc. The finishing spraying is done by
using Pallet and Hanger. Pallet is used in case of huge piece of logs and Hanger is
used for small piece of log.

ASSEMBLING

It is the section in which the different furniture materials are joining together for
making the furniture. In furniture section the woods are shaping, sanding, turning
and drilling. These wood pieces are assembling in order to make the exact
furniture. Packing work is also doing in assembling department.
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PACKING AND DISPATCHING

After all the above steps, the goods are finally checked by the supervisor and packing
the goods while packing the goods are covered with bubble sheet and put it in the card
board.

SMOOTH 4 SIDE SECTION (S4S)

S4S is the one of the important stages in the production process. The overall s4s
controlled by a Supervisor from the sawmill, after kiln drying process the words are
transferred to the s4s section. In the s4s section the size and width of the kiln dried
wooden pieces are adjusted and are classified in to various categories like X, C and
CX based on their quality and price.
Where,
X- Means first quality woods
C- Means one side damage
CX- Means both side damage woods

STRUCTURE OF PRODUCTION DEPARTMENT

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BOARD OF DIRECTORS

MANAGING DIRECTOR

GENERAL MANAGER

JOIN PRODUCTION MANAGER

SHIFT ENGINEER

PRODUCTION SUPERVISOR

ASSISTANT PRODUCTION SUPERVISOR


WORKER

3.2 MARKETING DEPARTMENT

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Marketing is meeting needs profitably. It is a human activity directed at satisfying the
needs and wants through an exchange process. In todays business world the function
of marketing has assumed greater importance , from mere selling to people whom
demand products marketing has to create demand where no products exists .It is the
foremost function that gives the management hopes for their integrated task
through making profits. It is a social and managerial process by which
individuals and groups obtain what they need want through creating and
exchanging products and value with others.

Marketing of RUBCO HUAT WOOD is done by RUBCO Sales International ltd


(RSIL) at H.O. Kannur. RUBCO Sales International ltd. (RSIL) is a public
limited company promoted by RUBCO to spear head the sales and
marketing activities for RUBCOs entire range of products in the domestic
and international markets. Within a short span of its inception, RSIL could
effectively develop a competent network domestically as well as globally and
undertaken the successful launch of RUBCOs product. Its efficient &
effective marketing strategies helped the organization to build up a very
strong brand name.

FUNCTION OF MARKETING DEPARTMENT


The functions of marketing department are given below;

Conducting seminar/ exhibition for the purpose of launching new product

to the market and also make the people aware of their existing products.
Conducting retailers meet for the purpose maintaining cordial

relationship between management and distributors dealers, retailers


Conducting consumer survey for the purpose of collecting information
from customers for the further product development and evaluation of
existing position of product in the market.
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Formation of effective marketing strategies according for the marketing


competition increase market share launching of new products entering in
to a new market with different product formulation of sales strategies in

order to achieve the target turnover.


Product development is based on the feedback from customers and
retailers.

CHANNELS OF DISTRIBUTION
A channel of distribution is the path through which products move from the place
of production to the place of ultimate consumption. The company distributes its
products through dealers. The company has around 150 dealers throughout India .

RUBCO factory

Dealers

Customers

PROMOTIONAL TOOLS

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Once the product is manufactured, price fixed and distribution channels are
selected, the next task is informing the prospective customer. The customers of
RUBCO are informed through the following tools:

Advertising

Dealers meet

Carpenters meets

Discounts, offers, gift packs during festival season.

Sales man gift scheme.

MARKET SEGMENTATION

A market consists of large number of buyers and they are widely scattered. They
are different in their wants, purchasing power, buying attitude, buying practices
etctherefore it is desirable to group the buyers on the basis of location, income ,
education, age, sex etc.. This grouping of buyers is called market segmentation.
RUBCO haut wood follows geographical segmentation. It is divided in it two.

Home segmentation
It consists of state of Kerala.

Outside Kerala segment


It consists of all states in India other than Kerala.

STRUCTURE OF MARKETING DEPARTMENT


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Managing director

General Manager
Marketing Manager
Asst: Marketing Manager
Marketing supervisor
Field forces

3.3 SALES DEPARTMENT


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Sales management is the term applied to the process of distributing goods from the
producer to the ultimate user. It consists of advertising, selling, storing, transporting
and handling, financing or risk taking. The objective of sales management is not
merely to sell goods to distributors but to get them consumed or get them into use.
The responsibility of the sales manager is to ensure that the system of distribution
works very efficiently and effectively, allowing no stock lying idle at any stage. These
objectives can be achieved only with proper planning and organization of the sales
division. In RUBCO HUAT WOOD (PVT) LTD. sales division is located in the main
building in Kannur. The building filled with the rich exhibition of furniture items.

RUBCO HUAT PVT. LTD. follows the indoor selling. They sell goods to the
customers who visit the showroom to purchase furniture. Seven sales executives are
appointed in the showroom. Whenever a customer visits the showroom, the salesmen
take him to all the floors and show the different designs of furniture and describes
about the price and quality etc. Their furniture range is suitable for different
customers. If the customer is not satisfied with the available items, he can place order
and get requirement executed according to his/her specification.

FUNCTIONS OF SALES DEPARTMENT

Receiving data from dealers and arranging for the dispatching of


products.

Preparation of invoices and other related document for dispatch

Maintaining of sales register and filling of sales tax returns and other
statutory records with the sales tax department

Maintaining and submission of statutory documents pertain to central


excise department

Preparation of quotations as per the requirement from the parties in


consultation with the production department and accounts officer.
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STRUCTURE OF SALES DEPARTMENT

Managing director

General Manager
Sales Manager
Asst: Sales Manager
Sales executive
Staf

3.4 PURCHASE DEPARTMENT


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Purchasing is the most important function of material management as the moment
an order is placed for the purchase of materials; a substantial part of the company
finance is committed which effects the cash flow position of the company. The
head of the department is usually known as purchase manager. The purchasing
department plays a very important role in organization

because purchasing has

effects on every vital factor concerning the manufacture, quality, cost, efficiency,
and prompt delivery of goods to customers. The purchasing department is
responsible for the efficient purchase of all goods of proper quality required for the
different department.

FUNCTIONS OF PURCHASE DEPARTMENT

To establish purchase policies, procedure and practices.

To identify and choose the best source of supply materials

To receive purchase requisition from all departments.

To place purchases order with supplier and maintain records

To check the quality and quantity of materials received.

To verify and approve the invoice for payment

PURCHASE PROCEDURE
The following are the various purchase procedure which are followed by RUBCO
HUAT (P) LTD.
1)
2)
3)
4)

Receipt of purchase requisition


Inviting quotations
Preparation of comparative statement
Selection of suppliers
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5) Preparation of purchase order
6) Goods receiving notes at the store
7) Recommendation of invoice for the release of payment to the suppliers

STRUCTURE OF PURCHASE DEPARTMENT

Managing
Director
GM

Purchase
Manager

Purchase
asst.

Stock
Keeper
Asst.
Store
Keeper

3.5 FINANCE DEPARTMENT


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Finance is regarded as the lifeblood of the business enterprise. Financial management
is that managerial activity which is concerned with the planning and controlling of the
firms financial resources. It deals with finding out various sources for raising funds
for the company. Finance is regarded as the lifeblood of business & enterprises. In
modern money oriented company, finance is one of the basis foundations of all kinds
of economic activities. It is the master key, which provides access to all the sources
for being employed in manufacturing of merchandising activities.

The success of finance department demands on how finance is planned at the various
levels of the administration under the management. Efficient management of every
business enterprise is closely linked with efficient management of its finance.
Finance and accounting are the two separate functioning of the finance department.
Accounting is related to keeping information regarding the transaction of the business,
so that the financial statement can be prepared periodically for knowing the status of
company. Business finance can broadly be defined as the activity concerned with
planning, raising, controlling & administrating of the funds used in the business.

All financial control functions and accounts procedure are maintaining by this
department. This department creating estimated budgets for the new projects. This
department evaluated all financial functions of the company. One financial accounts
manager is working in superior post of this department. Four accounting assistance
enters day to day transaction of each branch.

FUNCTIONS OF FINANCE DEPARTMENT

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The functions of finance department in RUBCO HUAT PVT. LTD. are,
Preparation of annual budget.
Keeping personnel files of employees relating salary computation annual
increment
Payment of suppliers bill.
Scrutiny of all payment bills.
Maintaining of sales ledgers.
Working capital management.
Tax administration.
Preparation of cost sheet.

WORKING CAPITAL
Working capital refers to the amount required to meet the day to day operations of
the business the working capital of the company is 80 lakh per month complete rise
working capital in the following ways

Cash

Inventories

Accounts receivable.

AUDITING

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The accounts of the company should be compulsorily audited. The auditing work is
done by m/s Varma & Varma, Kannur. There is an internal auditing system which
is done by the internal auditor.

TAX STRUCTURE

Company pays sales tax, income tax and excise duty (14%) VAT 12.5% to the Kerala
Govt.in accordance to change in state budget

STRUCTURE OF FINANCIAL CONTROL

Managing Director

General Manager

Finance committee

Treasurer

Controller

3.6 HUMAN RESOURCE DEPARTMENT

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With the increase in the size of business, manpower has become the most vital factor
in business. Personnel management is a specialized branch of management that deals
with people. Human beings are the principal asset of a business or industry. People are
the main subject matter of personnel management and it is its business to educate
employees, line and staff and supervisors to place a high value of the dignity and
work of the individual human being.

Human resource management is that part of total management of an organization


which specifically deals with human resources in respect of their procurement, their
development in terms of skill, knowledge and attitude and their motivation towards
the attainment of organizational objectives by creating and maintaining an
organizational climate conclusive to such development.

FUNCTIONS

Conducting job analysis

Planning labors needs and recruiting job candidates

Selecting job candidates

Conducting orientation and training programs for new employee

Managing wages and salaries

Providing incentives and benefits

Appraising performance

Communication with employees

Training and developing managers

Building employees commitment

GROUPING OF LABOUR
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RUBCO HUAT furniture considers their workers as the main input and hence the
satisfactions of the workers are given maximum consideration. The workers are
grouped under two heads.
o

Factory workers

Showroom workers

In the factory, workers are widely spread into various sections. In each section, there
is one foremen and supervisor. The total worker of a company is 600. All the workers
are supervised under the control of Factory Manager. The laborers are classified into
four groups. They are:

Specialized workers

Skilled workers

Unskilled workers

Learners

All group of workers work in each section of the factory. Trainees are working in
each section system in RUBCO HUAT WOOD PVT. LTD., the Managing Director is
the top executive of the administrative system.

RECRUITMENT PROCESS
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Internal
Internal recruitment means to fill the vacancies from within the organization by
promotion, transfer etc. RUBCO recruits most of its personnel internally by way of
promoting suitable candidates within the organization and also considers relatives of
the staff already working with them.

TRAINING

In RUBCO, the selected candidates are given training in the specified jobs. They have
a probation period of one year in which first six months are treated as learners.
Supervisors will give on the job training to them during that period. During probation
period employees are closely watched. Any unruly behavior from their part will cause
their further service in the company. At the end of the training period, the trainees
must be capable of taking work as per the condition, or otherwise their appointment
stands cancelled.

THE SHIFT TIMINGS AT RUBCO HAUT WOOD


First shift

8.30 am to 5.00 pm

Second shift

5.00pm to 1.00 am

Third shift

1.00am to 8.30am

REMUNERATION AND WAGES


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The workers in the factory are compensated on the basis of hourly rate, Rs.20-50/- per
hour, according to their work, speed and accuracy. The skilled workers can get
Rs.400-500/- per day. The semi-skilled labor can get Rs.200-300/- per day; the
average laborer can get Rs.100-150/- per day. All payments are paid on a monthly
basis.

SOCIAL SECURITY BENEFIT

For social security benefits such as sickness, employment injuries and death etc, the
employees are covered under the ESI Act of 1948.

PERFORMANCE APPRISAL

It is the process of evaluating the employees performance of a job in terms of


requirements. RUBCO HUAT WOODS are using grading method for performance
appraisal. Supervisor appointed to evaluate the performance of workers. According
to their performance, they are given grade as below;
A grade

excellent

B grade

good

C grade

satisfactory

Following factors are taken into consideration for fixing grades:

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Attendance

Responsibility

Ability to grasp things

Work performance

Quality of output

TRADE UNION
The trade union is an inevitable part of modern industrial setup. Trade union
influences industrial democracy morale and productivity. RUBCO HAUT WOOD
has only one trade union that is RUBCO Employees Union (REU), which is
affiliated to CITU. Since there is only one trade union there is no inter union
rivalry.

ABSENTEEISM AND TURNOVER


One of the problems RUBCO HAUT WOOD facing to today is the increasing rate
of labor turnover. It is the outcome of resignation and dismissal of workers. Some
of the reason for the resignation is getting better job, dissatisfaction with working
condition, sickness etc.
Main consequences of labor turnover are losing expert hands, decrease in
productivity, increased cost of recruitment etc.

FINANCIAL SYSTEM
Computerized accounting system there is no need of manual posting. Only
transactions are entered and posting, balancing etc. are done by the computer itself.
The Company has adequate internal control system commensurate with its size and
nature of business. The Audit Committee reviews the report of internal auditors and

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quality results published as per listing agreement. The Board believes that appropriate
procedure and monitoring mechanism are in place.

STYLE
It deals with the leadership approach of top management and the companys overall
operating approach. In other words the management behaves and collectively spends
its time to achieve organizational goals. Leadership is unanimously agreed as
psychological process of influencing followers and providing guidance to them.
Leadership is essential to influence people to achieve mutually compatible objectives.

The company strongly believes that in sustaining the challenges posed by the
competitors, the companys strength will lie in customer satisfaction, quality
assurance and innovative solutions through wide variety of products and technical
expertise. The company expects that the customer loyalty will safely remain by facing
the challenges posed to the industry through innovative and quality leadership.

PARTICIPATIVE LEADER SHIP


Company follows the participative style of leadership. It means that the democratic
leadership style favors decision-making by the group as shown, such as leader gives
instruction after consulting the group. They can win the cooperation of their group
and can motivate them effectively and positively. The decisions of the participative
leader are not unilateral as with the autocrat because they arise from consultation with
the group members and participation by them.

Advantage

The different issues and ideas are easily communicated with the each
department.
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Open discussions and problem solving.

SHARED VALUES
It deals with the values and beliefs of the company. Ultimately they guide employees
towards valued behavior. In other words the employees share the same guiding
values when these elements are present, companies are usually more successful at the
strategy implementation. The main values are as follows:

Sincerity to the work

Cooperation among the workers

Quality of work

SKILLS
It deals with the capabilities and competencies that exist within the company. In facts,
through experience been singularly responsible for the most significant product
innovations in the Indian furniture industries.

The different skills which company enjoying are as follows

Management skill.

Administrative and leader ship skill.

High skilled sculptures and designers.

High skilled marketing people

The Companys staffs have different kinds of skills. Highly qualified


professionals in the company have major skills like technical, financial,
economic and public relation skills.

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STRUCTURE OF HR DEPARTMENT

MD

GM

APO

TIME OFFICER

COMPUTER
PROGRAMMER

STENO

JUNIOR CLERK

HEAD GUARD

SECURITY
GUARD

RECEPTIONIST

TYPIST

DRIVR

ATTENDER

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SWOT ANALYSIS

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CHAPTER - 4

SWOT ANALYSIS

SWOT Analysis refers to the strength and weakness of the company and opportunities
and threats in the environment. The investor should carry out a SWOT analysis for the
chosen industry. Take for instance, increase in demand for the industrys product
becomes its strength, presence of numerous players in the market, i.e. competition
becomes the threat to a particular industry. The progress in the research and
development in that particular industry is an opportunity and entry of multinationals
in the industry becomes the threat to that industry.

Strengths: Are attributes of the organization that are helpful to the achievement of
the objective.

Weaknesses: Are attributes of the organization that are harmful to the achievement
of the objective.

Opportunities: Are external conditions that are helpful to the achievement of the
objective.

Threats: Are external conditions that are harmful to the achievement of the
objective
The overall evaluation of company strengths, weakness, opportunities and threats is
called SWOT analysis.

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4.1 STRENGTHS

Strengths are attributes of a company that are helpful to achieving the objective.
Largest

distribution within India and abroad.

Superior

product quality and wide range of products manufactured out of

quality wood.
Strong

brand equity.

Superior understanding of the market.

Healthy financial

structure.

Timely delivery and customer satisfaction.

Well established manufacturing base.

Better

promotional activities.

Highly skilled

professionals and qualified workforce.

Leadership attitude, energy and aggression in the market place.

Vast area ware

4.2 WEAKNESSES
Weaknesses are attributes of the company that are harmful to achieving the objective.

Prices charged are high and not affordable to all classes of people.

Since the furniture manufactured is made out of quality wood, it is heavy


for easy transportation.

Lack of awareness among many people.

Lack of staff is hindering the smooth flow of the organization.


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Price of trunk and wood increases.

RUBCO is newly established company. So large volume of


productive time is consumed to enable these inexperienced workers to

familiarize with their work procedure...


RUBCO plans to expand their market in south India, but
transportation from Kerala to other markets will be a big burden when
comparing to their competitors as they dont have their own

marketing division compared with their competitors.


Lack of promotional activities abroad

4.3 OPPORTUNITIES

Opportunities are external conditions that are helpful to achieving the objective.

Availability of well qualified manpower.

Availability of new developed technology and equipments.

Continued absence of leading playing in defense sector.

Expansion of profit.

Emerging trend of apartments and institutions.

Change in style of decorating office rooms, bed rooms, and


kitchen.

Develop a E-business

The factory can undertake new project with respect to project

diversification.
The company has introduced a variety of products in the
market which encourages the customer with a lot of alternatives.

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4.4 THREATS

Threats are external conditions which could do damage to the objective.

Competition from new entrants into furniture industry

Low differentiation in Products

High price war

Chances of prices of wood going up which will further increase the cost of
production.

Lack in the shortage of supply and availability of materials in time.

Unfavorable Gov. Policies affects the entire furniture industries

Taste of the customer varies, Inability to fulfill the customer satisfaction


results in the dump of the product.

Lack of raw materials, Shortage of raw materials could affect the


production of Mattresses thereby unable to meet the demand in the
market.

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FINDINGS,
CONCLUSIONS AND
SUGGESTIONS

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CHAPTER 5

5.1 FINDINGS

During this study entitled An organization study at RUBCO HUAT WOOD PVT
LTD, I have come across several findings about the organization, some of them are
listed below,

It is found that more than 50% of employees are between the age group of 2035. This reveals that company is having young and energetic Workforce who
is creative, enthusiastic and also very determined to grow in their career and

in turn helping the company to grow.


Market leaders of South India.
The company also makes use of the latest technologies from Italy and

Thailand for production purposes.


Good dealership network has leaded the company in serving the needs of

customers.
Quality policy and control adopted by the firm has shown it the way to

success in the industry.


An HR practice has promoted a family atmosphere which is found dispute

free.
Firm has been in the path of expansion.
The company is financially sound.
There exist a healthy and positive relationship between employees and

managers.
The market for the company is expanding from the coastal areas to other
parts of Kerala.
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It is also learnt that the overwhelming demand for the products also makes it

difficult to keep the pace between the demand and supply.


Fixed delivery schedule is maintained by the company to avoid any problems

arising out of improper timings.


The companys location helps in generating more employment to the people
in the locality.

The company follows strict discipline policy which adds a plus point to its
operations.

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5.2 CONCLUSION

This final part of the study reveals that the RUBCO HUAT WOOD PVT LTD has a
good product line and product department to tap all the segments of the market.
Because of the company, it is possible to fulfil the dreams of many people who are
working in the company by generating employment opportunities and becoming the
reason for thousands of smiles across the state.

Based on the discussions made in the study, the overall performance of the company
in the recent years is very good. Compared to its past records it has a good control
over the market and has been able to utilize the opportunities and its strengths to
topmost level.

With the establishment of the second unit, the company is going to

achieve more production and a fittest competition in the market.

The commitment and efficiency of employees helps RUBCO products to


capture the highly competitive market. The product quality enables the

organization to get the prominent place among the competitors.


The employees at the organization are well satisfied with their working

conditions and maintain very good interpersonal relationships.


The company also make use of the most advanced technologies for

production purposes.
The company is financially sound which makes itself dependable

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5.3 SUGGESTIONS
Following are the suggestions for the company
The company should extend their market to large cities.

The company should set up more parlors in and around its operations.

Company should give allowance in time.

Company should provide medical leave to their employees.

Strictly act on the misbehavior of employees towards their work.

Company should give casual leave.

The company should take strict action on the workers who are irregular on
their work.
The company should be particular about the other activities at the time of
work performed by the employees.

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BIBLIOGRAPHY

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RUBCO HUAT WOODS (P) LTD


BOOKS REFERRED:

Philip Kotler and Keller Kevin, Marketing Management, 12th edition, EBook

Publishers.
Rao Subba P. Personnel and Human resource Management, Himalaya Publishing
House Private Ltd, Mumbai.

INTERNET WEBSITES:

WWW.RUBCO HAUT WOOD.COM


WWW RUBCOGROUP.COM

OTHERS:

Information from various departments


Company Brochure
Company annual reports

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SCHOOL OF MANAGEMENT
STUDIES